China is the next destination for business and growth factor in China is through the roof. Even Apple has a strong base in China because the business grows in a vast market like China and it is a stronghold for greater Asia as well.
If you are looking to establish your business in Hong Kong then you need to have the basic information in order to assess the viability of the plan. Today we have decided to list the main basic steps of starting your business in China for your convenience.
1. Naming the Company:
Your company will need to have an English and a Chinese name. It is better to find a Chinese name these days that you simply write in English as well. It shows that you are rooted in China and will get you goodwill in Asia.
You have to choose a unique name, like My Easyfi expense tracking software. that no one has ever chosen before or is using right now. Try and find a name that you know is original.
2. Legal Structure of the Company:
You will need to develop a strong legal structure for your company before you get it registered in China. You need strong legal guidance to know the type and structure of your company. All of these factors greatly define how you will be taxed in the Chinese market.
Your main options in the regard are a branch office, limited company, company limited by shares or guarantee, sole proprietorship, and partnerships. Even if you are starting an entrepreneurial venture like best affiliate marketing training by Affiliate Marketing Monks
3. Company Registration:
China has an office known as Companies registry. This office will incorporate your company in Chinese registry. Most companies are registered as limited company for it has the highest benefits.
4. Forms to be Submited:
At the time of incorporation, you need to have the following documents ready:
- Proof of address
- Signed Incorporation form from partners
- Copies of identification documents for shareholders and company directors.
You will also pay a fee to registr but the fee can be payed online through E-registry. You can also submit a hardcoy of the payment at the time of registration.
5. Company Bank Account:
Now that yur company is registered in Hong Kong, you should open a bank account for funding your company. You will need to prepare the following documents before you show up at the bank for opening your company account.
- The incorporation document of the company
- The list of documents asked for in the application form, by the bank.
- Reisterd address and contact details of the company and its business owners.
- Certification by a lawyer, banker, public accountant or company secretary.
- A true copy that is certified of the identification documents of the company
- Proof of business that can include a business plan or an audited financial statement
- A certified true copy of the company’s Business Registration Certificate.
- Explanation of beneficiaries of the company in the form of the nomination of shareholders or stakeholders of the company.
6. Permits and Licence:
The next step for you is to understand what permits and licenses do you need to start doing your business. You need to make a production journey of your business to know how many steps will require licenses.
The government website and online license services of China have a detailed list of licenses and permits that the government issues. You can cross-check your list with the website and gain a basic idea of what licenses you will require.
7. Tax System in Hong Kong:
The city has a territorial tax regime which means there is no profit tax on companies that are working outside of Hong Kong. The city has almost the lowest taxes in Asia and you also get a long list of tax deductions.
The profit tax rate in Hong Kong is 8.2% on the first HK $2 million in profits. The tax increases to 16.5% on all other profits. If you want more information, check out GovHK to know more.
8. Insurance And Pension Regulations:
Every company has to enroll its employees in the MPF scheme (Mandatory Provident Fund). It is the law under ordinances of Employees Compensation and guarantees that requires that the company will cover all of its employees in the scheme. You can only hire employees aged from 18-65.
9. Annual Filling List:
There is a long list of fillings that you have to follow when running your business in Hong Kong. The Companies Registry keeps and issues the deadlines for all the yearly filing deadlines. You should keep these announcements on Google alert so that you will know right away.
The following are the fillings you need to consider every year.
- Annual Filing Requirements
- The annual return needs to be filed under the Companies Ordinance (CO).
- The Inland Revenue Department requires a tax return as well as the audited accounts. Every year.
These are the basic and universal fillings but other filings vary with changing company regulations and types of businesses.
Hong Kong is great for entrepreneurs. Your company may be eligible for grants to small businesses and you may be losing on such opportunities. You will also be remiss not to hire a business expert from the local population who can help you understand things better.
It is tough building a new business in a new land. That is why it is important that you know how to develop a business and grow it with time. But establishing your business in Hong Kong is truly worth it.
The labor is economical and you will get international quality of the resource. The businesses in Hong Kong rarely fail simply because China is a massive market that can absorb literally any product.
These are the main requirements that will give you a cursory idea of the first few months. Of course, you will need to look much deeper to know the exact details. Best of luck with your venture.
Emma Thomas is a content writer and a copywriter for bird of paradise linen clothing brand . A writer by day and a reader by night, she can be often found picking cherries in summer Afternoons